How fin-tech startups are helping SMEs?

SMEs face challenges while securing a working capital loan and credit line. This is mainly due to the lengthy procedure and collateral based capital lending which reduces the loan or credit line accessibility for SMEs.

Fin-tech startups are the new-age digital platforms aimed at offering unsecured business loans and credit lines for SMEs with precise credit processing. All this is done using data-based algorithms which provide a faster view of an SME’s health and assist with impartial credit distribution.

 The long application procedure, paperwork, and collaterals have been minimized and scientific data tools are being used to assess creditworthiness. Unlike NBFC or banks, fin-tech firms are focusing on mining information using technology to create precise data-driven results for superior customer satisfaction.

The benefits of securing working capital through fin-tech startups v/s traditional lenders are:

1. Accessibility – Fin-tech startups like OfBusiness, Capitalfloat, Indifi etc are making it extremely easy for the SMEs to address their working capital requirement. Unlike traditional lenders like banks and distributors, it’s quick and hassle-free. Most of the companies claim to process credit applications within 3-5 workings days.
2. Impartial credit allotment – Data-driven algorithms for credit approval have made the process faster and impartial. The layman procedure involving paperwork and collateral submission has also been simplified.
3. Competitive interest rates – Fin-tech startups like OfBusiness offer unsecured credit line upto 2 crores at lower interest rates. Moreover, SMEs pay interest only on disbursed amount despite having bigger credit lines at disposal and only for period used.
4. Complementary services – In addition to financing, OfBusiness helps the SMEs procure bulk raw-material like steel, polymer, cement etc. from trusted suppliers, to improve service quality and prevent any credit failure.
5. Retaining ownership – Unlike banks, fin-tech startups let SMEs retain the ownership of their company by offering collateral free credit line. The transaction outlines every detail of the process with no hidden charges or any pre-payment for registration.

OfBusiness and other fin-tech startups offer customized credit lines to meet urgent working capital requirement and assistance in sourcing bulk raw-material material.

Reach out to us at 1800-102-9586 or mail to contact@ofbusiness.com.